Snapshot, Inc. is a manufacturer of digital cameras. It has two departments: assembly and testing. In January 2017, the company incurred $700,000 on direct materials and $785,000 on conversion costs, for a total manufacturing cost of $1,485,000. During February 10,000 cameras are placed into production, but only 8,000 cameras are fully completed at the end of the month. All direct materials have been added to the remaining 2,000 cameras. However, on average, these remaining 2,000 cameras are only 50% complete as to conversion costs. (Click the icon to view the data on the cameras.) Read the requirement. Prepare summary journal entries for the use of direct materials and incurrence of conversion costs. (Record Begin by recording the purchase and use of direct materials. Journal Entry Date JE 1 Accounts Requirement Print Debit Prepare summary journal entries for the use of direct materials and incurrence of conversion costs. Also prepare a journal entry to transfer out the cost of goods completed. Show the postings to the Work in Process account. Done Credit X Reference Costs incurred during the period Equivalent units of work done in current period Cost per equivalent unit Print Direct Materials Conversion Costs $ 700,000 $ 10,000 785,000 9,000 70.00 $ $ Done 87.22 $ Total 157.22 X
Snapshot, Inc. is a manufacturer of digital cameras. It has two departments: assembly and testing. In January 2017, the company incurred $700,000 on direct materials and $785,000 on conversion costs, for a total manufacturing cost of $1,485,000. During February 10,000 cameras are placed into production, but only 8,000 cameras are fully completed at the end of the month. All direct materials have been added to the remaining 2,000 cameras. However, on average, these remaining 2,000 cameras are only 50% complete as to conversion costs. (Click the icon to view the data on the cameras.) Read the requirement. Prepare summary journal entries for the use of direct materials and incurrence of conversion costs. (Record Begin by recording the purchase and use of direct materials. Journal Entry Date JE 1 Accounts Requirement Print Debit Prepare summary journal entries for the use of direct materials and incurrence of conversion costs. Also prepare a journal entry to transfer out the cost of goods completed. Show the postings to the Work in Process account. Done Credit X Reference Costs incurred during the period Equivalent units of work done in current period Cost per equivalent unit Print Direct Materials Conversion Costs $ 700,000 $ 10,000 785,000 9,000 70.00 $ $ Done 87.22 $ Total 157.22 X
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:Snapshot, Inc. is a manufacturer of digital cameras. It has two departments: assembly and testing. In January 2017, the company incurred $700,000 on direct materials and $785,000 on conversion costs, for a total manufacturing cost
of $1,485,000. During February 10,000 cameras are placed into production, but only 8,000 cameras are fully completed at the end of the month. All direct materials have been added to the remaining 2,000 cameras. However,
on average, these remaining 2,000 cameras are only 50% complete as to conversion costs.
(Click the icon to view the data on the cameras.)
Read the requirement.
Prepare summary journal entries for the use of direct materials and incurrence of conversion costs. (Record
Begin by recording the purchase and use of direct materials.
Journal Entry
Date
JE 1
Accounts
Requirement
Print
Debit
Prepare summary journal entries for the use of direct materials and incurrence of
conversion costs. Also prepare a journal entry to transfer out the cost of goods
completed. Show the postings to the Work in Process account.
Done
Credit
-
C
X
Reference
Costs incurred during the period
Equivalent units of work done in current period
Cost per equivalent unit
Print
Direct Materials Conversion Costs
$
700,000 $
10,000
70.00 $
$
Done
785,000
9,000
87.22 $
Total
- X
157.22
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 4 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education